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Applying Overhead to Jobs, Costing Jobs

Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,810 and Job 94 with a beginning balance of $7,330. Jagjit applies overhead at the rate of $7 per direct labor hour. Direct labor wages average $17 per hour. Data on August costs for all jobs are as follows:

Line Item Description	Job 93	Job 94	Job 95	Job 96
Direct materials	$960	$4,550	$3,320	$1,290
Direct labor cost	1,870	4,930	2,720	680

During August, Jobs 95 and 96 were started. Job 93 was completed on August 17, and the client was billed at cost plus 40%. All other jobs remained in process.

Required:

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1. Calculate the number of direct labor hours that were worked on each job in August.

Line Item Description	Direct labor hours
Job 93	fill in the blank 8040b1005fbd068_1 DLH
Job 94	fill in the blank 8040b1005fbd068_2 DLH
Job 95	fill in the blank 8040b1005fbd068_3 DLH
Job 96	fill in the blank 8040b1005fbd068_4 DLH

2. Calculate the overhead applied to each job during the month of August.

Line Item Description	Amount
Job 93	$fill in the blank 8040b1005fbd068_5
Job 94	$fill in the blank 8040b1005fbd068_6
Job 95	$fill in the blank 8040b1005fbd068_7
Job 96	$fill in the blank 8040b1005fbd068_8

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1. For each job divide the labor cost by the labor rate.

2. Multiply the applied overhead rate by the labor hours for each job.

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3. Prepare job-order cost sheets for each job as of the end of August. All amount cells must have an entry; enter zeros as needed.

Line Item Description	Job 93	Job 94	Job 95	Job 96
Beginning balance	$Beginning balance	$Beginning balance	$Beginning balance	$Beginning balance
Direct materials	Direct materials	Direct materials	Direct materials	Direct materials
Direct labor	Direct labor	Direct labor	Direct labor	Direct labor
Applied overhead	Applied overhead	Applied overhead	Applied overhead	Applied overhead
Total	$Total	$Total	$Total	$Total

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Partially correct

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4. Calculate the balance in Work in Process on August 31. The work in process balance on August 31 is fill in the blank 1 of 1$.

5. What is the price of Job 93? The price of Job 93 is fill in the blank 1 of 1$.

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